Chakraborty bullish on steel space

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Amitabh Chakraborty of Religare Securities is bullish on steel space.

Chakrabarty told CNBC-TV18, "For longer-term we are very bullish on steel sector. These are all short-term blips that for last two-months the price could not be raised etc. If the government controls the iron ore price rise, which is there in the news for today, so that would be positive for the steel sector again and otherwise also the monotony is over so they can raise. SAIL is telling that some portion they will be raising, some portion they will not be raising. So net-net we believe that there would be lot of newsflow and companies like Tata Steel and SAIL looks very good at this point."

He further added, "If you go back to the global situation if you have seen last week when Arcelor Mittal conference call happened, they have actually come out with one of the best possible EBIDTA margins and they said that going forward also they are expecting very robust price in performance from Arcelor Mittal. So that will be the case, globally the situation is quite tight. So your price should be strong and rupee coming down from 45 level to 42 level and if you see around that USD 2.5 billion probably will be coming for the Daiichi deal, the money transaction happens and also if oil price is coming down as just now I heard, USD 108/bbl is the next support etc. All of a sudden we will see that the commodity prices, landed cost that comes down. So to that extent government will be increasing, the local price is becoming slightly easier. So steel is a good sector to be in for 6-9 months, one-year period."

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